Qatar Pulls Out Of Oil Cartel OPEC

Qatar Pulls Out Of Oil Cartel OPEC

Qatar Pulls Out Of Oil Cartel OPEC

Unverified reports had said that Saudi Arabia had in fact planned an invasion of the emirate previous year, and was stopped at the last minute by the persistent efforts of former US Secretary of State Rex Tillerson.

It's the world's largest exporter of liquefied natural gas.

According to OPEC, Qatar produced only about 1% of OPEC member states' total output of petroleum in October 2018, the most recent month for which there is data.

Qatar will withdraw from Opec on January 1, Qatari Energy Minister Saad Sherida Al Kaabi announced on Monday.

"In light of such efforts and plans, and in our pursuit to strengthen Qatar's position as a reliable and trustworthy energy supplier across the globe, we had to take steps to review Qatar's role and contributions on the global energy scene, " al-Kaabi said.

He added that OPEC was told of the decision on Monday ahead of the announcement. "I assure you this purely was a decision on what's right for Qatar long term". Benchmark Brent is trading at about $62 a barrel, down from more than $86 in October.

Al-Kaabi said Qatar Petroleum planned to raise its production capability to 6.5 million barrels barrels of oil equivalent a day from 4.8 million in the next decade.

Twitter handles were abuzz with the news break."It is better if OPEC breaks, free market may stablise oil prices", read a tweet.

OPEC is dominated by oil-rich Saudi, which along with its allies has had no ties with Qatar since June 2017.

Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd.

Qatar's decision to leave OPEC has been described as a "surprise" by Ashley Kelty, an oil and gas research analyst at Cantor Fitzgerald Europe.

Ever since the economic blockade was slapped on Qatar, the country's position in the Saudi Arabia-led regional order had looked untenable.

Qatar refutes the allegations and claims rivals want to overthrow its government.

"Strategically, withdrawing from OPEC frees Qatar to pursues its considerable interests and clout in its key industry- natural gas..."

Not getting involved in policies that support Iran's destabilizing agenda for the region and greater coordination in dealing with Yemeni and Libyan issues was also agreed to by the two countries, the Arab Weekly said, citing sources.

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